Measurement of Value Added Tax Evasion in Selected EU Countries on the Basis of National Accounts Data

16 Pages Posted: 24 Apr 2001

See all articles by Chang Woon Nam

Chang Woon Nam

CESifo (Center for Economic Studies and Ifo Institute); Ifo Institute, Germany; University of Applied Management (UAM)

Rüdiger Parsche

Ifo Institute, Germany

Barbara Schaden

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Date Written: March 2001

Abstract

The size of tax evasion and fraud appears to be increasing steadily in the EU. To a certain extent, the completion of Single Market has further encouraged firms' and households' evasive behaviour in paying value added taxes in the EU Member States, whereas such efforts have traditionally been most pronounced in the field of corporate and personal income taxation. This study primarily deals with the quantification of the VAT evasion and fraud in the EU. On the basis of the national accounts data, it suggests a novel way of estimating the annual amount of hypothetical VAT revenues for the individual EU countries. The relation between the calculated hypothetical and the (current) collected revenues in a fiscal year largely determines the extent of VAT evasion and fraud of a country, when the time-lag problem between the creation of tax liability and the VAT collection in cash terms can be adjusted.

JEL Classification: F02, K42, O17, H25, H26, H87

Suggested Citation

Nam, Chang Woon and Parsche, Rüdiger and Schaden, Barbara, Measurement of Value Added Tax Evasion in Selected EU Countries on the Basis of National Accounts Data (March 2001). CESifo Working Paper Series No. 431. Available at SSRN: https://ssrn.com/abstract=267677

Chang Woon Nam (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Ifo Institute, Germany

Munich
Germany

University of Applied Management (UAM) ( email )

Am Bahnhof 2
Erding, 85435
Germany

Rüdiger Parsche

Ifo Institute, Germany ( email )

Poschinger Str. 5
Munich, 01069
Germany

Barbara Schaden

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

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